E ENI Spa

By Benoit Faucon 
 

Eni (ENI.MI) isn't rushing back to Iran due to looming risks of returning U.S. sanctions and unattractive deals offered by the Islamic republic, the head of the Italian oil giant said Monday.

The remarks contrast with a decision last year by French oil major Total SA to invest $1 billion in Iran as part of a $4.8 billion budget to help develop a giant gas field in the Persian Gulf.

Speaking at an energy conference in London, Eni Chief Executive Claudio Descalzi said "the buyback contract for us is not good. We are waiting for a possible new proposal."

Eni has signed a memorandum of understanding with the state-run National Iranian Oil Company to conduct studies on oil-and-gas projects in the Kish offshore field and the Darquian field in southwest Iran, but has yet to commit to a final deal.

Earlier this month, U.S. President Donald Trump renewed a waiver on oil sanctions against Iran agreed as part of an international nuclear accord but warned he won't renew this decision in May.

"Clearly the situation is more difficult than before," Mr. Descalzi said, adding "we don't want to make any fight with the U.S."

Write to Benoit Faucon at benoit.faucon@wsj.com

(END) Dow Jones Newswires

January 29, 2018 12:53 ET (17:53 GMT)

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